• by Sarah Mahoney  @mahoney_sarah, February 28, 2023

Tinder is losing its sex appeal, especially among younger daters looking for more than a casual hookup. So the company is introducing its first-ever global brand campaign, highlighting the tender moments that can grow from genuine relationships.

Tinder, which just turned 10, still reigns. It's the #1 downloaded app among 18-year-olds. And 55% of young singles have been in a serious relationship with someone they met on Tinder.

But in results released last month, parent Match Group said Tinder's annual revenues had flattened. So Match has been moving quickly to address weakening demand -- including this first brand campaign.

The company is also looking for ways to improve the user experience, "creating more authentic moments and opportunities for self-expression, which are especially important for Gen Z," said chief executive officer Bernard Kim in its shareholders' letter.

Mischief created the campaign, themed "It Starts with a Swipe." The goal is to celebrate success stories and inspire the next generation of singles.

The new ads illustrate moments that are often more sweet than sexy: lounging in comfortable silence or hanging up a toothbrush at your new friend's place. They emphasize diversity and inclusion, as well as authenticity.

Spots also illustrate the importance of shared values, since 63% of Tinder members say this is one of their relationship aims.

Ads are running in social media, streaming platforms and out-of-home. And they'll roll out soon in the U.K., Germany, France, Spain, Australia, Brazil and Mexico.

In the shareholders' letter, Kim defended the need for a marketing campaign. "From its inception, Tinder grew rapidly through strong, organic word-of-mouth, so there was less of a need to market," he wrote. "However, over time, this lack of marketing has contributed to a narrow brand perception that does not celebrate the breadth of relationship possibilities Tinder creates every day."

While the campaign will increase Tinder's ad spending, he says it will remain under 10% of the brand's direct revenue.

Match is looking for new ways to boost revenues, too, testing short-term subscription packages. Later this year, it plans to roll out virtual currency to reward user behavior and allow members to transact for new features.

Observers are somewhat skeptical. Oppenheimer downgraded Match following the financial release, as "we wait for Tinder stabilization," writes Jason Helfstein, an analyst who follows Match. He calls the company a "'show me' story, after losing a record number of paid subscribers, about 500,000."

And while Tinder attributed the loss of about 268,000 of those subscribers to the removal of lower-priced tiers, "the strategy requires changing focus away from 'freemium’ to 'premium’ via large paid marketing campaigns, and indicates a maturing business that has passed peak margins."